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Dominica Economical Facts

 

Economical overview

No other country in the Caribbean has been as dependent on the banana industry as Dominica, but banana production has been in crisis for a long time. Attempts to develop other industries have been slow.

Bananas were the country's most important export product for many years, but production has fallen sharply as a result of falling prices and increased competition in the world market. Until 2006, Dominica and the other former colonies in the Caribbean were guaranteed some banana exports to the EU, but after a long dispute with the US and banana growers in Latin America, the EU was forced to abolish this system.

  • Countryaah.com: Major imports by Dominica, covering a full list of top products imported by the country and trade value for each product category.

The banana crops on Dominica are often difficult to access in the mountains and the farming methods are outdated, making the country's bananas more expensive than many competitors. The crops are also destroyed at regular intervals by hurricanes. As a stone on burden, Dominica's banana crops were affected by an infectious disease from 2012 and production fell further.

Agriculture is still the most important industry and the most growing. Around one fifth of the population was engaged in agriculture. While banana production is in decline, the cultivation of mango, avocado, citrus fruits and vegetables is increasing. The cultivation of coconuts is also important.

The fishing that is carried out is mostly for housing needs, but some catches are processed at facilities in the country's ports and sold to neighboring countries.

  • Abbreviationfinder.org: Check this abbreviation website to find three letter ISO codes for all countries in the world, including DMA which represents the country of Dominica.

Economical Facts of Dominica

The industry consists mainly of smaller companies that process agricultural products. The country's only significant manufacturing industry, which, among other things, made toothpaste and coconut soap, closed after Hurricane Erika's ravages in 2015. There is also a brewery and a banana packaging company. The construction industry has expanded through government-financed expansion of mainly roads and housing. There is also a small mining industry that breaks pumice, among other things to the construction industry.

The importance of the tourism industry for the economy has increased, but the expansion of tourism is limited by the fact that the beaches are few and relatively small and that the country lacks an airport that can receive international flights.

The average economic growth rate is among the lower in the region. The development is uneven and the years when the island is affected by hurricanes, there are major setbacks in the development. Hurricane Erika's ravages in 2015 are estimated to have caused the country economic damage equivalent to half GDP. Hurricane Maria, which advanced across the island in 2017, was expected to have far worse effects.

There is a large deficit in trade with the outside world. Import of goods exceeds exports many times (see fact box). The deficits are covered by loans, assistance and money that emigrants abroad send home. Other important income comes from the citizenship trade. Anyone investing $ 175,000 in the country gets a Dominican passport.

Like Dominica, Dominica enjoys favorable trading conditions in the US market through the Caribbean Basin Initiative and with the EU through the European Partnership Agreement (EPA). Membership of Venezuela's Petrocaribe initiative gives Dominica a discount on Venezuela's oil imports.

To broaden the economy, Dominica is trying to attract foreign finance companies with particularly favorable terms, and the country has attracted companies accused of engaging in money laundering. Dominica's laws have been criticized by the OECD and other organizations for not doing enough to prevent such foam deals. After the criticism, the laws have been rewritten.

Other stated priority areas for the government are to expand communications within the country and reduce bureaucracy.

Sources: Europa World Plus, FAO

FACTS - FINANCE

GDP per person

US $ 7,032 (2018)

Total GDP

US $ 504 million (2018)

GDP growth

0.5 percent (2018)

Agriculture's share of GDP

12.7 percent (2018)

Manufacturing industry's share of GDP

1.3 percent (2018)

The service sector's share of GDP

55.1 percent (2018)

Inflation

1.6 percent (2019)

Government debt's share of GDP

74.1 percent (2018)

External debt

US $ 296 million (2017)

Currency

eastern Caribbean dollar

Merchandise exports

US $ 22 million (2017)

Imports

US $ 174 million (2017)

Current account

US $ 202 million (2017)

Commodity trade's share of GDP

57 percent (2018)

Main export goods

paper products, minerals, machinery and electrical appliances, fruits and vegetables

Largest trading partner

USA, China, Jamaica, Trinidad and Tobago, UK, France, Saint Kitts and Nevis

 

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